Rics: Commercial property demand on the up - commercial mortgages

27 April 2007

Demand for commercial property in the UK is on the increase according to reports from the Royal Institute of Chartered Surveyors (Rics), suggesting that commercial mortgages uptake could be set for an increase.

Rics reports that business demand for commercial property is accelerating at the fastest level in some seven years, with strong growth across regions.

During the first three months of 2007 35 per cent more chartered surveyors have reported an increase in commercial property demand as opposed to a fall, as the expansion rate doubled to a record high. Experts at Rics highlight a strong economic climate as conducive to high commercial property demand.

"A strong economy and increasing profits have encouraged businesses to continue to seek business premises across all regions of the UK," states Rics commercial property spokesperson Ian McRae.

"Expectations for commercial property remain healthy even with a further rate rise looming."

Trends indicate increased demand for commercial properties in greater London as the central London market approaches saturation.

Earlier this month Savills reported that commercial property development in the UK was at a three-year high.